So if I get this right, you tried to power-level for an advantage...and it turned out to be a disadvantage?
Working as intended????
Actually you don't get this right.
I keep seeing people complain about this, and everyone apparently has no idea how the leveling and skill system works, so let me break it down for you guys.
1) Your skill level in something does NOT change your stats, the perks you have purchased do. This means that if you have no perks, your skill level doesn't matter. For example, a character that has no perks in One-Handed Weapons will deal the exact same amount of damage if their skill level is 1 as they would if it were 100. This is the most important thing to remember.
2) You can purchase one perk in every skill tree without having increased that skill at all. This means that you have no excuse to not have at least 1 weapon and 1 armor perk bonus, regardless of your game or skill level. (Yes, you need a higher skill level to get more perks, but that is not my point here)
3) Equipment is a reflection of game level, but not skill level. You can start the game using Iron weapons, but you can later upgrade to Steel and then Elven or Ebony, etc. The higher quality the weapon or armor, the better its stats will be. You do not need to increase your skill level to be able to use these weapons. And as stated in #1, your skill level alone will not change the equipment's stats.
4) You can improve all weapons and armor once, regardless of skill level. Improving equipment increases its stats.
5) You can enchant all weapons and armor regardless of skill level. Enchanting equipment gives you increased stats or abilities.
6) Regardless of how you level, you get 10 points to spend in Magicka, Health, or Stamina. So if you are leveling through combat or crafting, you can increase your Health the same amount. More Health means you are harder to kill. Just as you gain Health as you level, so do the enemies. It's a logical progression.
7) You do not NEED any combat perks to be effective in combat. Seriously.
8) If you are fighting, which there is no way you cannot in this game, you WILL increase your combat stats, so you have no excuse to complain about not having access to higher level combat perks. Since you get a perk point every time you level, regardless of how you level, this means you have no room to complain about not having enough combat perks. If you want more, spend those points in combat skills rather than crafting or other non-combat skills.
9) Let me reiterate that your skill level does NOT change your stats, since no one seems to understand that. A character with skill level 1 in 1H Weapons will do the same damage with a weapon as the character with skill level 100, if they have no perks.
10) I am speaking from experience. I am level 25, playing on Expert, and I achieved about half of my leveling through all three types of crafting. Until level 20, I had 1 point in the One-Handed Weapons skill tree and 1 point in the Heavy Armor skill tree. My skill with One-Handed Weapons is 61, and my skill with Heavy Armor is 57. My skill with Smithing is 63. I have put the majority of my 10 point increases into Health. I am wearing Steel Plate armor that I crafted, improved, and enchanted myself (every piece), and I am using a Skyforge Steel Axe that I improved and enchanted myself. My follower is Lydia, who I equipped with an Imperial Bow that I improved and enchanted myself.
I have NO trouble fighting enemies- dragons, hagravens, trolls, mammoths, giants, mobs, you name it. If you are having trouble in combat, it is because you are bad at combat. Stop blaming the level scaling. If the game didn't scale, I would probably one-hit everything.
Wow from the first glance at 1 you clearly do not know anything about the game and yet you claim "that none understands".
And you say it's the most important thing to remember eh?
Quite a funny one you are.
Yes your skillpoints do affect your stats in every skill.(damage of weapons, value or armors, mana costs, improvements etc) Test it with console. And as you say you only have 1 character and you are speaking from experience? Right, sure.
And repeating same thing again because some people just won't get it no matter how many times one will explain. It is not about difficulty. It is about how you are being weaker when you level a non-combat skill. People who have one character, play on adept and think everything is fine should not even have an opinion.

What did you expect dude? Merchants svck at fighting, but they are great at earning cash, that is why you can't expect a warrior to earn tonnes of money selling his loot compared to a merchant. See where im going with this?
If you want to be an alchemist, you have to use that skill to your absolute advantage! Like quick mapping 100's of health potions to your hotkey and surviving dungeons that way.
Jeez, people love to complain!
Oh really? What you don't get and obviously haven't tested is that for example if you raise "speaking" and get more money and buy better weapons, these weapons will be actually WORSE than your previous ones because the enemies will have leveled. If i took my time and raised alchemy and made a lot of potions to buff myself or heal in battle the enemies would get stronger and if i had not bothered at all, i would not even need these potions in the first place! Get it now? If you don't have 2 characters to compare it's hard to see that but it's there test it yourself.
This is very interesting to me. If you "level the [censored]" out of non-combat skills, how can you expect to be able to stand toe to toe with a baddass fighter? I can understand the surprise to players who aren't used to these types of games or who play ones where a trade skill doesn't factor into levels, but think about it logically.
Yes this is a logic that WOULD work if the game let you exploit the extra money and items to make up for combat. But guess what. Even merchant items are scaled and there is nothing you can find in shops/locked chests that it's not already in dungeons/open chests. In terms of pure rp this which you say, works, but in practice you get no real benefit for these skills for them to be worth raising. So if you want to be a "blacksmith" or anything else you might as well hang in a town and pretend to be one until you get bored and never go out to have an adventure. Personally (and i think 90% of the people playing) i want to rp a warrior/saviour/hero/whatever so i should not level up these skills right?